Canadian Net Real Estate (TSXV: NET.UN)
Intro Sounds like real estate, doesn’t it? Yes, it actually does. You believe real estate is a sound investment in this interest rate environment? It depends. Before we get into Canadian Net Real Estate, a big disclaimer: this is once again a tiny cap with very low liquidity. So, if you need or want a lot of trading liquidity, this is certainly not something for you. Canadian Net acquires and retains commercial real estate leases in around 100 properties in Eastern Canada (focus on Quebec and Ontario) with a 100% occupancy rate as of Q3 2023. Some of the largest single tenant include Loblaws, Walmart or Sobeys. The contracts are on a triple net basis, meaning that the tenant pays all the expenses of the property, including real estate taxes, building insurance and maintenance. These expenses are in addition of the costs of rent and utilities. This is the major difference of triple net leases vs. normal commercial contracts where more costs are typically the landlord’s responsibili...